Heat pump (ducted, outdoor unit + air handler) replacement cost in Austin, TX
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,750 installed in the Austin area, about the same as the national figure, because HVAC technicians here earn a median $29 an hour against $29 nationally.
Prices by size in Austin
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $3,900 | $4,850 | $6,900 | $4,850 |
| 3 ton system | $5,000 | $5,750 | $7,600 | $5,750 |
| 4 ton system | $6,450 | $7,100 | $9,300 | $7,150 |
| 5 ton system | $7,700 | $8,450 | $10,850 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Austin metro | United States |
|---|---|---|
| 25th percentile | $24 | $23 |
| Median | $29 | $29 |
| 75th percentile | $36 | $37 |
The Austin market
Austin's Development Services Department runs a Residential Change-Out Program whose permits include water heaters and HVAC systems. The fee schedule lists the first HVAC system at $61.20, or $64.87 with the 6% Development Services surcharge, and each additional system at $17.10 before the surcharge; a separate water heater change-out fee is not itemized. Trade permits go to a State of Texas licensed contractor or a qualified homeowner with a homestead exemption filed with the appraisal district, though a homeowner may not reclaim or charge refrigerant in a ducted system. A final trade inspection is required, and a permit expires on day 181 if no inspection has occurred. Cooling drives demand: EIA found 83% of Texas homes have central air and 19% heat with a heat pump. Round Rock, San Marcos and Travis County areas outside city limits follow other rules.
Heat pumps handle Austin's short winters well, and swapping one is close to an AC job in scope, with heating controls and a reversing valve added. Texas has not launched its federal HEAR rebates, so ask the contractor about local utility rebates and get the program name in writing. During a hard freeze, a heat pump leans on backup electric heat strips. Ask how large the strips are and whether your panel can carry them alongside everything else running that night.
Permits in Austin
| Permit for this job | Yes (Residential Change-Out Program permit for HVAC systems) (source) |
|---|---|
| Fee | HVAC change-out: $61.20 first system + 6% surcharge = $64.87; each additional system $17.10 (+6% = $18.13). Water heater change-out fee not itemized. |
| Who can pull it | State of Texas licensed contractor, or qualified homeowner with a homestead exemption (homeowner may not reclaim/charge refrigerant in ducted HVAC) |
| Inspection | Yes (final trade inspection; permit expires on day 181 without an inspection) |
Rebates in Texas
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: Texas State Energy Conservation Office (Comptroller), checked October 13, 2026.
What these programs cover, and other states
Other systems in Austin
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- City of Austin: Trade permits
- City of Austin residential fee schedule
- City of Austin Development Services: Fees
- City of Austin mechanical permit request form
- Texas Comptroller: State Energy Conservation Office
- EIA, 2020 RECS: Highlights for space heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for water heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for air conditioning in U.S. homes by state
- https://www.austintexas.gov/development-services/work-exempt-building-permits
- BLS OEWS May 2025, Austin-Round Rock-San Marcos, TX (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)